Figure 11-5

Multiple Choice

Figure 11-5. Merric Company uses an activity-based costing system.Four activities have been identified.The setup activity uses the number of setups as its cost driver.The following budget information is available for this activity:
The company expects to perform 25 setups in May.
Refer to Figure 11-5.If the company expects 25 setups in the month of May,what would be the total budgeted costs of the setup activity?

A) $240,000
B) $375,000
C) $135,000
D) $397,500
E) none of these